McGuigan Simeon has signed a contract for the sale of its Griffith-based winery and bottling operation to Dal Broi Family Wines, a private family wine company, for an undisclosed sum.

Under the arrangements of the sale, Dal Broi will continue to process MGW's Riverina grape intake as a contract processor for the time being. Additionally Dal Broi will continue to package wines for MGW at the site.

MGW retains a lease over the warehouse at the site for a 12-month period to facilitate the continued distribution of its domestic and New Zealand sales from Griffith before a relocation of those activities to the Merbein Winery at Mildura.

Occupation and operation of the winery will change hands on October 1st 2005. The sale will be completed on or before June 2006. MGW will also make available to the purchaser a vendor finance facility of up to 40% of the purchase price to be repaid by June 2008.

MGW managing director Brian McGuigan called the sale a very "neat fit".

He said: "The sale facilitates MGW's eventual centralisation of packaging and dispatch operations to the newly acquired Merbein winery near Mildura.